On the option front, 10,000 put option strike price is still holding a highest cumulative open interest followed by 10,500 strike price which is suggesting any fall is likely to be bought into
As expected, we witnessed huge participation of bulls last week at lower levels and Nifty closed with weekly gain of 1 percent at 10,805.45. The recent fall was arrested at 61.8% retracement level of latest swing move. Generally the panic lows at important support levels stay for a long time and provide opportunity to buy quality stocks.
Last week, after initial rally, Nifty went sideways and we can expect it to continue trading in narrow range this week as well until 100-DMA (10,940) trades on a higher side decisively and if it does, we could see an extension of this rally towards 11,050 and 11,310.
On the other hand, 200-Day Moving Average (10,756) will act as an immediate support level, decisive break of which could result in minor correction till 10,560 and 10,410 level.
On the option front, 10,000 put option strike price is still holding a highest cumulative open interest followed by 10,500 strike price which is suggesting any fall is likely to be bought into. On the call side, major cumulative open interest is placed at 11,100 strike price. Option band suggesting a trading range between 10,500 and 11,100 levels.
At this juncture, when all major events are behind us and RBI Governor Shaktikanta Das has taken the charge, it could be fresh sunrise for NBFC and Banking sector. Therefore, once 10,940 trades on higher side, we anticipate this rally is likely to continue for a while.
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